Question

purchased 200 shares of nabil bank @ rs. 600 each. journal

Answer 1

Share purchased = (200* 600)

                             =120000

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Journal entry

Investment on shares A/c    Dr   120000

           To cash or bank A/c                          120000

(being investment on shares )

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Reason:

Invested on shares - its a asset to the company , as we purchased shares in nabil bank its a investment to us . therefore its debited

payment made through cash or through bank .